Volume 3, issue #11 - 03-04-1998

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Chevron 1997 reserves replacement rate was 142 %

Feb. 17, 1998 Chevron replaced 142 % of its net oil and gas production with new proved reserves during 1997, excluding sales and acquisitions. Including sales and acquisitions, the rate was 115 %. It was the fifth consecutive year in which the company has replaced more than 100 % of its net oil and gas production with new proved reserves.
The company produced 1.48 million bpd of net oil and oil-equivalent gas during 1997, the highest level in 12 years.
"Our continuing success in adding proved reserves and increasing production is due to the efforts of our multifunctional teams around the world, " said Chevron Chairman Ken Derr. "With our large inventory of prospects -- especially in Kazakhstan, West Africa, Australia and North America -- we're aiming for record-setting years in world-wide production and proved reserves in 1998 and beyond."
Reflecting the company's emphasis on growth outside the United States, the 1997 replacement rate for international operations was 160 % excluding sales and purchases, and 127 % including sales and purchases. Key areas for reserves increases were West Africa, Australia and Indonesia.
U.S. operations replaced 120 % of production excluding sales and purchases, the highest rate since 1984. Including sales and purchases, the replacement rate was 100 %.
World-wide proved reserves at year-end were nearly 6.2 billion barrels of oil equivalent (boe). Proved reserves additions during 1997 totalled 622 mm boe. These additions largely resulted from new discoveries and extension efforts in the company's West Africa and Gulf of Mexico operations and improved recovery projects in California, West Africa and Indonesia.
The primary reason for a lower replacement rate when sales and acquisitions are considered was the company's 1997 sale of several U.S. producing properties, such as the Heidelberg field in Mississippi, and the sale of 10 % of its interest in the Tengizchevroil joint venture in Kazakhstan. Chevron retains 45 % interest in Tengiz.